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Part-Year Resident
A person who lived in a particular state for only part of the year but must file a state income tax return there.
Payroll Tax
See Employment Tax.
Penalty
Charges added to your tax bill for late filing and late payment. The IRS may also charge interest for late tax payments.
Pension
A retirement plan that pays an annuity. Also see Individual Retirement Arrangement.
Personal Exemption
An exemption claimed for yourself and, if married filing jointly, for your spouse.
PIN
Personal Identification Number. A five digit number used to securely "sign" an electronically submitted, or efiled, tax return.
Points
Additional charges paid during the financing or refinancing of a mortgage. A point is equivalent to 1% of the mortgage amount. Payments of points are generally tax deductible.
Principal Residence
Also called a Primary Residence. The place where a taxpayer lives for the greater part of the year.
Progressive Tax
A tax based on a percentage of income. The higher your income, the larger a percentage you pay. Our current federal income tax system.
Property Tax
A tax paid for valuable property such as real estate and vehicles.
Proportional Tax
Another term for Flat Tax.